Raises 2016 Expectation for Oil Output by 5 Percent
D&C Capex Remains within Guidance Range
WPX Energy (NYSE: WPX) announced today that it is increasing its
full-year oil production guidance to an average of 39 to 41 Mbbl/day, up
5 percent from previous guidance of 37 to 39 Mbbl/day.
Guidance for total equivalent production is up 3 percent to 77 to 82
Mboe/day from a previous estimate of 75 to 80 Mboe/d.
The increase is driven by better-than-expected well performance and an
expected increase in drilling and completion activity in the Delaware
and Williston basins during the second half of 2016.
WPX’s previously announced plan to add a third rig in the Delaware Basin
is scheduled to occur in October, along with new plans to complete 15 to
20 drilled but uncompleted wells in the Williston Basin beginning in
Despite the planned increase in activity, the company’s updated drilling
and completion budget for 2016 – $400 million to $450 million – remains
within the original guidance range of $350 million to $450 million.
Additionally, WPX is initiating an expansion of its owned and operated
midstream infrastructure in the Delaware Basin with the addition of a
crude oil gathering system. This infrastructure supports the company’s
large contiguous acreage position in the Stateline area of the basin.
WPX plans to commission the crude line in 2017. Once in service, the new
infrastructure will improve oil differentials for the company’s
production in the Delaware Basin. WPX’s existing infrastructure in the
basin is comprised of natural gas gathering and water gathering and
“We are well positioned to leverage our operational momentum in ways
that can accelerate and enhance the value we deliver to stockholders,”
said Rick Muncrief, president and chief executive officer. “The steps
we’re taking to increase activity in our world-class assets are
consistent with our emphasis on remaining opportunistic.”
About WPX Energy, Inc.
WPX is an oil-focused energy company with operations in the Permian’s
Delaware Basin, the Williston Basin and the San Juan Basin. The company
has reshaped its holdings through more than $5 billion of transactions
and posted double-digit oil volume growth in each of the past four years.
This press release includes “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. All
statements, other than statements of historical facts, included in this
press release that address activities, events or developments that the
company expects, believes or anticipates will or may occur in the future
are forward-looking statements. Such statements are subject to a number
of assumptions, risks and uncertainties, many of which are beyond the
control of the company. Statements regarding future drilling and
production are subject to all of the risks and uncertainties normally
incident to the exploration for and development and production of oil
and gas. These risks include, but are not limited to, the
volatility of oil, natural gas and NGL prices; uncertainties inherent in
estimating oil, natural gas and NGL reserves; drilling risks;
environmental risks; and political or regulatory changes. Investors
are cautioned that any such statements are not guarantees of future
performance and that actual results or developments may differ
materially from those projected in the forward-looking statements. The
forward-looking statements in this press release are made as of the date
of this press release, even if subsequently made available by WPX Energy
on its website or otherwise. WPX Energy does not undertake and
expressly disclaims any obligation to update the forward-looking
statements as a result of new information, future events or otherwise.
Investors are urged to consider carefully the disclosure in our
filings with the Securities and Exchange Commission, available from us
at WPX Energy, Attn: Investor Relations, P.O. Box 21810, Tulsa,
Okla., 74102, or from the SEC’s website at www.sec.gov.
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